Dell Inc. (Dell) shares have been taking a beating lately - and it's no wonder why. Basic Business 101 classes teach that companies can compete on any two (but never three) of the following:
1. Price
2. Product Quality
3. Service
Every week my Sunday paper has an ad for a Dell computer promising a rock bottom price, with top of the line "name brand quality," and a terrific service contract. The problem is that by going for the trifecta, Dell has essentially failed miserably at each one.
The prices in the Dell's ads look great, but upgrade even modestly and your cost can easily become double the advertised price. Customer support and service call centers have been sent overseas to India. The complaints are becoming legendary. Product quality is not what it used to be. The Dell emblem on a computer is now more a "warning" than a logo.
Remember - you can only compete on two. Listen up Dell: choose two and then do them well.
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